By Terryn Shiells, Commodity News Service Canada
December 18, 2013
WINNIPEG – ICE Futures Canada Canola contracts were slightly weaker on Wednesday after chopping around on both sides of unchanged throughout the day.
Spillover pressure from the declines seen in the Chicago soy complex was responsible for some of the price weakness. Losses in European rapeseed and Malaysian palm oil futures were also bearish.
The large Canadian canola supply situation, logistical issues in Western Canada and a bearish technical bias further undermined canola prices.
However, the downswing in the value of the Canadian dollar limited the losses, as it made canola more attractive to foreign buyers and crushers.
Ideas that canola is undervalued compared to other oilseeds and oversold price sentiment were also supportive.
About 39,929 canola contracts were traded on Wednesday, which compares with Tuesday when 35,447 contracts changed hands. Spreading accounted for 37,182 of the trades.
Milling wheat, durum and barley prices were untraded following price revisions after the close on Tuesday.
Settlement prices are in Canadian dollars per metric ton.
